BBFA - Board Member Ethics and Conflicts of Interest
No Board member will use his/her official position or office to obtain personal financial benefit or to avoid financial detriment for him or herself, relatives, or household members, or for any business with which the Board member, a household member or a relative is associated.
This prohibition does not apply to any part of an official compensation package, honorarium allowed by Oregon Revised Statute (ORS) 244.042, reimbursement of expenses, or unsolicited awards of professional achievement. Further, this prohibition does not apply to gifts from one without a legislative or administrative interest. Nor does it apply if the gift is under the annual $50 gift limit from one who has a legislative or administrative interest in any matter subject to the decision or vote of the Board member. District-provided meals at board meetings are acceptable under the reimbursement of expenses exception.
“Business with which a Board member or relative is associated” means any private business or closely held corporation of which a Board member or relative is a director, officer, owner, employee or agent or any private business or closely held corporation in which a Board member or relative owns or has owned stock, another form of equity interest, stock options or debt instruments worth $1,000 or more at any point in the preceding year; any publicly held corporation in which a Board member or relative owns or has owned $100,000 or more in stock or another form of equity interest, stock options or debt instruments at any point in the preceding calendar year; or any publicly held corporation of which a Board member or relative is a director or officer.
“Relative” means: the spouse[1], parent, step-parent, child, sibling, step-sibling, son-in-law or daughter-in-law of the Board member; or the parent, step-parent, child, sibling, step-sibling, son-in-law or daughter-in-law of the spouse of the Board member. Relative also includes any individual for whom the Board member has a legal support obligation, whose employment provides benefits[2] to the Board member, or who receives any benefit from the Board member’s public employment.
“Member of the household” means any person who resides with the public official.
No Board member will solicit or receive, either directly or indirectly, any pledge or promise of future employment based on any understanding that the Board member’s vote, official action or judgment would be thereby influenced.
No Board member will attempt to use or use for personal gain any confidential information gained through his/her official position or association with the district. A Board member will respect individuals’ privacy rights when dealing with confidential information gained through association with the district.
If a Board member participates in the authorization of a public contract, the Board member may not have a direct beneficial financial interest in that public contract for two years after the date the contract was authorized.
Individual Board members, and the Board as a public entity, are bound by the ethics laws for public officials as stated in Oregon law.
A Board member must publicly declare a potential conflict of interest. A Board member may, after declaring his/her potential conflict of interest, either vote or abstain on the issue. Abstaining from a vote does not meet the legal requirement of publicly stating a potential conflict.
A Board member must publicly declare an actual conflict of interest. The Board member may not vote lawfully if an actual conflict of interest exists unless a vote is needed to meet a minimum requirement of votes to take official action. Such a vote does not allow the Board member to participate in any discussion or debate on the issue out of which an actual conflict arises.
“Relative” means: the spouse[5], parent, step-parent, child, sibling, step-sibling, son-in-law or daughter-in-law of the Board member; or the parent, step-parent, child, sibling, step-sibling, son-in-law or daughter-in-law of the spouse of the Board member. Relative also includes any individual for whom the Board member has a legal support obligation, whose employment provides benefits[6] to the Board member, or who receives any benefit from the Board member’s public employment.
“Member of the household” means any person who resides with the Board member.
“Fair market value” is the dollar amount goods or services would bring if offered for sale by a person who desired, but was not obligated, to sell and purchased by one who is willing, but not obligated, to buy. Any portion of the price that was donated to charity, however, does not count toward the fair market value of the gift if the Board member does not claim the charitable contribution on personal tax returns. Below are acceptable ways to calculate the fair market value of a gift:
- In calculating the per person cost at receptions or meals the payor of the Board member’s admission or meal will include all costs other than any amount donated to a charity.
charitable dinner at $100 per person. If the cost of the meal was $25 and the amount
donated to charity was $75, the benefit conferred on the Board members is $25. This
example requires that the Board member doe snot claim the charitable contribution
on personal tax returns.
2. For receptions and meals with multiple attendees, but with no price established to
attend, the source of the Board member’s meal or reception will use reasonable
methods to determine the per person value or benefit conferred. The following
examples are deemed reasonable methods of calculating value or benefit conferred:
(other than charitable contributions) by the number of persons whom the payor
reasonably expects to attend the reception or dinner;
than charitable contributions) by the number of persons who actually attend the
reception or dinner; or
3. Upon request by the Board member, the source will give notice of the value of the merchandise, goods, or services received.
4. Attendance at receptions where the food or beverage is provided as an incidental part of the reception is permitted without regard to the fair market value of the food and beverage provided.
- The entertainment is incidental to the main purpose of another event (i.e. a band playing at a reception). Entertainment that involves personal participation is not incidental to another event (such as a golf tournament at a conference); or
- The Board member is acting in their official capacity for a ceremonial purpose.
Entertainment is ceremonial when a Board member appears at an entertainment event for a “ceremonial purpose” at the invitation of the source of the entertainment who requests the presence of the Board member at a special occasion associated with the entertainment.
Examples of an appearance by a Board member at an entertainment event for a ceremonial purpose include throwing the first pitch at a baseball game, appearing in a parade and ribbon cutting for an opening ceremony.
- Campaign contributions are not considered gifts under the ethics rules.
- Gifts from “relatives” and “members of the household” to the Board member are permitted in an unlimited amount; they are not considered gifts under the ethics rules.
- Informational or program material, publications, or subscriptions related to the recipient’s performance of official duties.
- Contributions made to a legal expense trust fund if certain requirements are met.
- Food, lodging, and travel generally count toward the $50 aggregate amount per year from a single source with a legislative/administrative interest, with the following exceptions:
a. Organized Planned Events. Board members are permitted to accept payment for
travel conducted in the Board member’s official capacity, for certain limited
purposes:
(1) Reasonable expenses (i.e., food, lodging, travel, fees) for attendance at a
convention, fact-finding mission or trip, or other meeting do not count
toward the $50 aggregate amount IF:
(a) The Board member is scheduled to deliver a speech, make a
presentation, participate on a panel, or represent the district; AND
(i) The giver is a unit of a:
or
(b) The Board member is representing the district:
mission; OR
activities where receipt of the expenses is approved in
advance by the Board.
(2) The purpose of this exception is to allow Board members to attend
organized, planned events and engage with the members of organizations
by speaking or answering questions, participating in panel discussions or
otherwise formally discussing matters in their official capacity. This
exception to the gift definition does not authorize private meals where
the participants engage in discussion.
6. Food or beverage, consumed at a reception, meal, or meeting IF held by an organization
and IF the Board member is representing the district. Again, this exception does not
authorize private meals where the participants engage in discussion. “Reception”
means a social gathering. Receptions are often held for the purpose of extending a
ceremonial or formal welcome and may include private or public meetings during which
guests are honored or welcomed. Food and beverages are often provided, but not as a
plated, sit-down meal.
7. Food or beverage consumed by Board member acting in an official capacity in the
course of financial transactions between the public body and another entity described
in ORS 244.020(7)(b)(I)(i).
8. Waiver or discount of registration expenses or materials provided to Board member
at a continuing education event that the Board member may attend to satisfy a
professional licensing requirement.
9. A gift received by the Board member as part of the usual or customary practice of the
Board member’s private business, employment or position as a volunteer that bears no relationship to the Board member’s holding of public office.
The honoraria rules do not prohibit the solicitation or receipt of an honorarium or a certificate, plaque, commemorative token or other item with a value of $50 or less; or the solicitation or receipt of an honorarium for services performed in relation to the private profession, occupation, avocation or expertise of the Board member or candidate.
END OF POLICY
ORS 162.015 to -162.035
ORS 162.405 to -162.425
ORS 244.010 to -244.400
ORS 332.055
OAR 199-005-0001 to -199-010-0150
38 Or. Atty. Gen. Op. 1995 (1978)
Or. Ethics Comm’n, Or. Gov’t Ethics Law, A Guide for Public Officials.
BBFB - Board Member Ethics and Nepotism
DJ - District Purchasing